3 Grand Rapids housing projects won state tax credits, 1 that did not

Posted Jan 26, 2018

The former Grand Rapids Christian High School building at 415 Franklin Street SE was approved for low income housing tax credits by the Michigan State Housing Development Authority. The Inner City Christian Federation plans to build 40 apartments in the building.(Jim Harger | Mlive Media Group)

GRAND RAPIDS, MI - Three Grand Rapids affordable housing projects won the state tax credits they'll need to break ground while a fourth project to put housing in downtown's Keeler Building fell short.

The Michigan State Housing Development Authority announced 13 projects that will be eligible for the housing tax credits on Friday, Jan. 26. The tax credits, granted over a 10-year period, can be sold to investors to raise funding for the project.

Grand Rapids projects that made the list include:

Inner City Christian Federation (ICCF) was awarded $1.1 million a year to build 40 housing units at 415 Franklin Street SE. This three-story brick building, originally built as Grand Rapids Christian High School, was used by state Department of Social Services from the late 1970's through 2009.

The Woda Group Inc. was awarded $924,000 per year to build a four-story, 50-unit apartment building at 745 Stocking Ave. NW at a cost of $10.4 million. All but one of those units will be rent restricted.

Not getting the tax credits was an application for Keeler Flats, a proposal aimed at putting 122 affordable and low income apartments into the Keeler Building, a seven story office building that has been mostly vacant for more than 20 years.

Other projects in West Michigan communities include Village of Kalamazoo Apartments in Kalamazoo; Selinon Park of Portage; Reed City Apartments in Reed City and Four Flags Plaza Apartments of Niles.

Statewide, the 13 projects will yield 833 units of rental housing for low- to moderate-income individuals and families.

"Overall, we estimate that this round of awards will leverage more than $160 million in private investment for Michigan," MSHDA Executive Director Earl Poleski said.

The ICCF project at 415 Franklin Street SE will 33 one-bedroom apartments and seven two-bedroom units in the building. Monthly rents will be set at $747 for one-bedroom units and $895 for two-bedroom units.

'The good news is that it gives us the opportunity to transform this beautiful building into a vibrant and active place that people can call home," said ICCF President and CEO Ryan VerWys.

VerWys said they hope to begin construction on the project after $13 million project after the financing is completed.

ICCF will share the building with Madison Square Christian Reformed Church, which has owned the building since 2015, and plans to convert the ground floor levels into a 10,000-square foot worship center and social service offices.

The plans also should not interfere with plans to use the old high school as an ArtPrize venue for SiTE:Lab, an art group that has created some of the most provocative and creative exhibit spaces for the competition, VerWys said.